Gevo sells first carbon removal credits to global finance firm

ENGLEWOOD, Colo. - Gevo, Inc. (NASDAQ:GEVO), a renewable energy company with a market capitalization of $362 million, has begun selling carbon removal credits for the first time, the company announced Monday. According to InvestingPro data, while the company has shown strong revenue growth, with analysts forecasting 8.77% growth this year, it faces profitability challenges as it develops its clean energy initiatives.

A global financial and technology company has purchased Puro.earth-certified CO2 Removal Certificates (CORCs) from Gevo to support its decarbonization efforts and mitigate corporate travel emissions.

The carbon credits are generated through carbon capture and storage (CCS) operations at Gevo’s North Dakota ethanol production facility, where biogenic CO2 is captured and permanently stored underground. According to the company, the site has a Class IV well for CCS with an estimated sequestration capacity of up to 1 million metric tonnes of CO2 annually.

"These are real sales of credits for carbon dioxide removal that are being generated right now," said Alex Clayton, Chief Business Development Officer for Gevo, in a press release statement.

The CORCs are certified by Puro.earth under standards requiring 1,000-plus years of permanence. Trenton Spindler, Chief Growth Officer at Puro.earth, stated that "Gevo is demonstrating that durable carbon removal isn’t some distant solution—it’s available now."

Carbon capture and storage represents a key component of Gevo’s broader strategy for developing sustainable aviation fuel (SAF) through multiple pathways. The company notes that CO2 can either be used in industrial applications such as food and beverage production or petroleum production, or it can be permanently stored to prevent atmospheric emissions.

Gevo, which describes itself as a next-generation diversified energy company, also operates one of the largest dairy-based renewable natural gas facilities in the United States.

In other recent news, Gevo, Inc. has seen several significant developments. Jefferies has increased its price target for Gevo to $1.50, up from $1.10, maintaining a Hold rating, influenced by the passage of the OBBBA legislation which impacts tax credits and renewable natural gas volumes. Meanwhile, H.C. Wainwright reaffirmed a Buy rating with a $14 price target following Gevo’s agreement to sell its subsidiary, Agri-Energy, LLC, for $7 million, a move expected to save the company approximately $3 million annually. This transaction, anticipated to close by the end of 2025, will also allow Gevo to retain certain assets for future development.

Additionally, Gevo has appointed Lindsay Fitzgerald as Chief Advocacy and Communications Officer, highlighting her extensive experience in policy advocacy and public communications. The company also announced Oluwagbemileke Agiri as its new Chief Financial Officer, succeeding L. Lynn Smull, to enhance its financial strategy. These leadership changes are part of Gevo’s broader strategy to strengthen its team and advance its energy solutions. Gevo continues to focus on renewable energy, operating significant facilities for renewable natural gas and alcohol-to-jet fuels.

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